Summary of economic news released on Tuesday, August 1
Czech Firm Cepro Interested in Transpetrol
Czech company Cepro, a.s. would like to buy a 49-percent stake in the Slovak crude oil pipeline company Transpetrol currently in the hands of the ailing Russian oil major Yukos. "Cepro in cooperation with the Czech government have shown interest in buying the stake through Cepro or through Mero," said spokesman for the Czech company Cepro Tomas Zikmund. Polish concern PERN and Russian companies Russneft and Gazprom would like to buy the stake in Transpetrol while also the Slovak government would like to buy it back from Yukos.
Branch of Banco Mais Reports H1 Loss of SKK 7.3 Mln.
The Slovak branch of Portuguese bank Banco Mais, S.A. reported a loss of SKK 7.3 million in the first six months of this year. The Portuguese bank started its operations on the Slovak market in September of last year. Net interest income amounted to SKK 2.1 million last year, however, the company reported negative net income from fees and commissions at SKK 1.6 million. General operating costs of the bank reached SKK 7.4 million. The balance sheet-total stood at SKK 64.1 million at the end of the sixth month. Claims against clients accounted for SKK 53.3 million.
Postova Banka Records H1 Pretax Profit of SKK 164.9 Mln.
Postova Banka, a.s. reported a pretax profit of SKK 164.9 million in the first six months of this year. Operating revenues reached SKK 678.6 million. Net interest income accounted for SKK 501.7 million. Net income from fees and commissions achieved SKK 167.6 million. Operating costs amounted to SKK 531 million.
Progas Recorded Revenues from Goods Sold of SKK 165.9 Mln.
Progas, s.r.o. Bratislava, a company engaged in distribution and sale of LPG, reached revenues from goods sold at SKK 165.9 million last year, which is down by 3.6 percent y/y. Cost of sales amounted to SKK 124.3 million, which is 2.4 percent more than in the previous year. Trade margin reached SKK 41.6 million, down by nearly SKK 9.2 million y/y. The added value of the firm dropped by SKK 9.4 million to SKK 15.8 million last year. The company ended last year with a loss of SKK 2.9 million in 2005, while a taxed profit of SKK 4.2 million was recorded in 2004. Operating loss of SKK 1.1 million was deepened by a loss from financial operations at SKK 1.9 million.
OMV Expects Pipeline to Schwechat to Launch Operation in 2007
Austrian oil company OMV expects a crude oil pipeline from Bratislava to the Austrian refinery in Schwechat to be launched in 2007, Andrea Hof of OMV's communications department informed SITA. "This 60-km long pipeline, which is currently at the stage of planning, will connect directly Austria to the Druzba pipeline from Russia, which will increase security of supplies to the country," said Ms. Hof. The Austrian company cooperates in the pipeline's construction with Slovak firm Transpetrol.
Insurer Wustenrot Poistovna With SKK 501.3 Mln. H1 Written Premiums
Insurance house Wustenrot Poistovna, a.s. managed to improve its H1 written premiums by 9 percent y/y to SKK 501.3 million. Written premiums in life insurance rose 28 percent y/y to SKK 210.6 million, while premiums in non-life insurance dropped to SKK 290.7 million. "Along with growth in the volume of written premiums we posted also a moderate growth in the number of insurance claims," Wustenrot Poistovna representatives told SITA. While they numbered 3,165 in the first half of last year, the company registered already 3,368 insurance claims in the same period of this year.
Slovakia's Jobless Rate Down to 15.1 Pct. in June, Reports Eurostat
A survey by Eurostat, the European Union's Statistical Office shows the seasonally adjusted unemployment rate in Slovakia at 15.1 percent in June: down 0.4 percentage points from May. However, Slovakia still reports the second highest jobless rate among EU countries. Only Poland had worse results with 16 percent unemployment rate. According to data from the Slovak Republic's Labor Office, which uses different methodology from Eurostat, the registered unemployment rate in Slovakia decreased to 10.36 percent in June from 10.56 percent in May.
INVESTING: Assets in Pension Funds Exceeded SKK 18.78 Bln. Last Week
Pension fund management companies managed savers' assets of SKK 18.78 billion in net value as of July 28, 2006. Value of assets managed by six Slovak pension fund management companies thus increased by SKK 670.5 million last week. Savings in growth funds amounted to nearly SKK 12.269 billion, in balanced funds it was SKK 5.722 billion and in conservative funds SKK 789.3 billion on July 28.
Slovakia Reports State Budget Deficit of SKK 5.244 Bln. in Late July
The state budget of the Slovak Republic ended the first seven months of this year with a deficit of SKK 5.244 billion. Its performance worsened by SKK 7.166 billion from the same period of the previous year, since growth of revenues was slower than drawing of expenditures, Zuzana Brutenicova of the Finance Ministry's press department informed SITA on Tuesday.
Ministry Wants to Reintroduce Service Areas for First Contact Doctors
Health Minister Ivan Valentovic plans to formally allocate patients from concrete service areas to their doctors of the first contact. This should concern general practitioners, dentists and gynecologists. The minister stressed that this will not have influence on the free choice of physician.
VULM Pharmaceutical Research Company Posts Sales of SKK 112 Mln.
Pharmaceutical research company VULM, a.s. Modra recorded sales for its products and services of SKK 112 million last year, up by 6.7 percent compared with 2004. The company reported output at SKK 110.3 million last year while its production costs stood at SKK 63.1 million. Added value the company generated grew by SKK 16.9 million on year-to-year basis and stood at SKK 47.3 million in 2005. These results were published in the Commercial Bulletin.
Klub 500 is Satisfied with New Government's Program, Warns of Risks
Klub 500, an organization clustering companies with labor force exceeding 500 views positively the new government's program statement presented on Monday. The association gave high marks to the new government's commitment to support such economic and monetary policy that would lead to introduction of the euro in Slovakia on January 1, 2009. The association also is satisfied with measures ensure a level playing field for local and foreign investors, support to knowledge-based economy, and progressive pro-export policy.
National Association of Employers Criticizes Government's Tax Policy
One of two representative organizations of employers, the National Employers' Association (RUZ) is very critical of goals that the new government set out in the tax policy section of its program to be approved in parliament this week. RUZ said that progressive taxation of private entities with over-standard incomes is an unfortunate step that discourages and punishes successful and educated people. Selective taxation of chosen companies or a lower bracket of the value added tax are non-systemic steps that would cause uncertainty of foreign investors, argues the RUZ. Its secretary Martin Hostak said that the planned steps bring chaos in the current relatively simple and transparent tax system.
Antitrust Office Confirms SKK 50,000 Fine to Jefta SOS Truck
The appellate body of the Antitrust Office (PMU), the council, has confirmed a fine of SKK 50,000 to Jefta SOS Truck Slovakia, s.r.o., Bratislava, a company engaged in road transport emergency services. It thus turned down the appeal of the company assisting trucks, and buses with technical problems and after traffic accidents. The office has fined the company for failure to provide information requested on the basis of the law on protection of competition.
Vah Obuv Shoemaker Recorded Output of SKK 136.4 mln Last Year
Footwear manufacturer Vah Obuv, s.r.o Ilava recorded a slight decrease in output to SKK 136.4 million in 2005 compared to SKK 137.5 million in 2004. The company reached sales of nearly SKK 136.8 million for its products and services while the company's production costs jumped by 36.9 percent to SKK 17.4 million. Ms. Kristina Gendiarova, head of the financial department of Vah Obuv's mother company Rieker Obuv gave the information to SITA. Vah Obuv closed last year with taxed profit of SKK 2.5 million, thus improving its economic performance compared to 2004 when the company reached a taxed profit of SKK 873,000.
MONEY MARKET: Banks Deposited SKK 130.717 Bln in Repo Tender
Slovak banks deposited SKK 130.717 billion in the regular two-week repo tender in the National Bank of Slovakia (NBS). According to OTP bank dealer Juraj Mitosinka, the central bank accepted all the bids at yields of 4.5 percent p.a. while maturing SKK 76.128 billion will return to the market on Wednesday. Taking account of the current state of funds on the market, banks could even have deposited a slightly higher volume on Tuesday stated the dealer.
STOCK MARKET: Trading was Sluggish on Tuesday
The official SAX share index stagnated at the same level already for the third trading day in a row. After Monday when no share from the SAX base was traded the situation remained the same on Tuesday. The index thus remained at Friday's 385.63 points. However turnover on the Bratislava Stock Exchange significantly surged particularly due to negotiated transfers of government bonds. It increased from SKK 458.053 million on Monday to SKK 33.376 billion on Tuesday with SKK 1.346 million in share trading.
FOREX MARKET: Stagnated on Tuesday
The exchange rate of the Slovak crown against its referential currency, the euro, was almost unchanged on Tuesday. "Trading volume was close to zero," said Ludova Banka dealer Juraj Minar adding that the Slovak crown opened as well as closed trading at 38.080/110 SKK/EUR on Tuesday. He added that low volatility of the exchange rate as well as small volumes of deals were the main features of trading on Tuesday . "As if the crown was staying outside the interest of investors," said the dealer. The US dollar was traded against the euro at 1.2745 USD/EUR (middle). The Slovak crown was thus quoted at 29.885/29.915 SKK/USD. The cross rate of the Slovak and Czech crowns was 1.3375/1.3390 SKK/CZK.